The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Freeport-McMoRan (FCX) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.
Freeport-McMoRan is a member of our Basic Materials group, which includes 254 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Freeport-McMoRan is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for FCX's full-year earnings has moved 24.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, FCX has gained about 24.6% so far this year. Meanwhile, stocks in the Basic Materials group have gained about 20.4% on average. This means that Freeport-McMoRan is performing better than its sector in terms of year-to-date returns.
Loop Industries, Inc. (LOOP) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 25%.
Over the past three months, Loop Industries, Inc.'s consensus EPS estimate for the current year has increased 3.7%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Freeport-McMoRan is a member of the Mining - Non Ferrous industry, which includes 10 individual companies and currently sits at #23 in the Zacks Industry Rank. Stocks in this group have gained about 32.6% so far this year, so FCX is slightly underperforming its industry this group in terms of year-to-date returns.
Loop Industries, Inc., however, belongs to the Chemical - Specialty industry. Currently, this 43-stock industry is ranked #181. The industry has moved +11.8% so far this year.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Freeport-McMoRan and Loop Industries, Inc. as they could maintain their solid performance.
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Freeport-McMoRan Inc. (FCX): Free Stock Analysis Report Loop Industries, Inc. (LOOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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